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With investment on the rise, blockchain is expected to transform a
wide variety of industries in the coming years

While still nascent today, blockchain business value, which refers to
the cost savings and efficiencies that could be realized by
incorporating blockchain into corporate business strategies, is
projected to increase from $2.5 billion in 2017 to $2.0 trillion in
2030, according to IHS
Markit (NASDAQ:INFO), a world leader in critical information,
analytics and solutions.

"Early adopters of blockchain have mostly been companies in the
financial services industry, which use it mainly in payments-related
solutions," said Don
Tait, senior blockchain analyst, IHS Markit. "However, the
technology is poised to ripple through virtually every industry,
affecting almost all organizations in the coming years."

Although blockchain is still an emerging technology, it is expected to
be transformative. According to the "Blockchain
Vertical Opportunities Report" from IHS Markit, this technology
demonstrates especially significant potential across the following
vertical industry markets and application areas:

1. Financial

The financial vertical market, which includes financial services,
insurance and financial technology (fintech), will primarily use
blockchain to conduct cross-border payments, share trading, securities,
claims management, derivatives, asset custody across both public and
private markets, currency, collateral management and corporate actions
processing. Because the market capitalization of all the world's stock
markets is equal to $73 trillion, even small cost savings and efficiency
gains can lead to significant business value for companies and
industries that decide to introduce blockchain technology.

"There is barely a day that goes by without a fresh announcement about
how banks and financial institutions are seeking to use blockchain
technology to transform significant parts of their business," Tait said.
"The financial vertical market will be the largest-value market to use
blockchain."

2. Supply chain and logistics

The supply chain and logistics industry is projected to improve
significantly with the introduction of blockchain technology. Indeed,
the World Trade Organization (WTO) estimates that the reduction of
barriers throughout the supply chain could potentially increase global
gross domestic product by 5 percent, and escalate total trade volume by
15 percent.

"Managing today's supply chains, with all the links to creating and
distributing goods, is extraordinarily complex," Tait said. "Depending
on the product, the supply chain can span hundreds of stages, multiple
geographical locations, a multitude of invoices and payments, have
several individuals and entities involved, and extend over months of
time. Due to the complexity and lack of transparency of our current
supply chains, there is interest in how blockchains might transform the
supply chain and logistics industry."

3. Identity management

Although identity management is not a vertical market, it is an
application area that is used in many vertical markets. With the
projected increase in the number of blockchain projects that are
launched and become commercially deployed, the business value within the
identity management sector is projected to reach $200 billion by 2030.
The ID2020 initiative continues to promote and support blockchain
technology to help the 1.1 billion people who live without an officially
recognized identity.

"Digital identity is one of the oldest and hardest problems on the
internet," Tait said. "However, the World Wide Web Consortium is now
standardizing the format for digitally signed credentials, and public
blockchains can provide the decentralized registration and discovery of
public keys needed to verify digital signatures."

4. Retail and e-commerce

The initial uptake of blockchain in retail and e-commerce is projected
to be led by trade promotions, decentralized marketplaces, payments,
smart contracts, supply chain and other applications. With the increase
in the number of blockchain projects that are launched and become
commercially deployed within this vertical sector, the business value is
projected to reach $164 billion by 2030.

"Using blockchain within the retail and e-commerce sector can lead to a
direct relationship opportunity with the customer, providing companies
with greater understanding of their needs and behavior," Tait said.
"Blockchain and smart contracts can also provide the tools and framework
to create a new generation of marketplaces where the supply and demand
sides can engage in trusted trading transactions, according to various
business rules, without the need for a central brokerage entity."

5. Healthcare

In the United States alone, counterfeit drugs cost pharmaceutical
companies more than $200 billion annually in lost revenues. Blockchain
could potentially help to minimize these losses. For this and other
reasons, the business value from blockchain in the healthcare sector is
projected to reach $134 billion by 2030. The initial uptake of
blockchain within the healthcare sector is happening in the application
areas of medical data management, drug development, claim and billing
management, and medical research.

"Blockchain could be used to solve many issues that plague the
healthcare industry today," Tait said. "For example, it could be used to
create a common database of health information across the gamut of
electronic medical systems, spur higher security and more privacy,
reduce administration time for doctors, and speed the sharing of
research results that facilitate new drugs and treatment therapies."

IHS Markit (NASDAQ:INFO) is a world leader in critical information,
analytics and solutions for the major industries and markets that drive
economies worldwide. The company delivers next-generation information,
analytics and solutions to customers in business, finance and
government, improving their operational efficiency and providing deep
insights that lead to well-informed, confident decisions. IHS Markit has
more than 50,000 business and government customers, including 80 percent
of the Fortune Global 500 and the world's leading financial institutions.